GlossaryEN1 min readUpdated: Jun 24, 2026
Incoterms® FCA (Free Carrier)
Freight forwarders and shippers favour FCA (Free Carrier) whenever the handover point needs to be precisely defined and mode-neutral.
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Source: https://iccwbo.org/business-solutions/incoterms-rules/
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
Freight forwarders and shippers favour FCA (Free Carrier) whenever the handover point needs to be precisely defined and mode-neutral. The seller delivers the goods, cleared for export, to the buyer's nominated carrier at the agreed location; from that moment, all costs and risks transfer to the buyer. If delivery takes place at the seller's premises, the seller must load onto the collecting vehicle – at any other named point, that obligation falls away. FCA covers containerised cargo, air freight, rail, and multimodal chains equally, making it far more versatile than FOB, which is restricted to sea and inland waterway. In modern container terminals, goods typically pass out of the seller's control at the gate, well before the vessel arrives, so the FOB risk transfer at the ship's rail carries little operational meaning. The ICC has therefore explicitly recommended FCA for container shipments since Incoterms 2020.
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⚖️ ICC Incoterms 2020
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